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Highlights of our full range of training courses / Workshops:Lean & Agile Supply Chain / Inventory Modelling Lean & Agile Manufacturing Planning & Control Operations Management / Team Leader Training Step Change Management / Business Process Reengineering Procurement (Purchasing & Supplier Management) Product Management / New Product Introduction / Quality Management Bookmarks for this topic below:Relevant Training Course / In-house Workshop Highlights:M01 Designing, Implementing & Operating Kanban Systems M08 Material Requirements Planning (MRP1) SSC07 Strategic Supply Chain Management SSC03 Advanced Forecasting & Inventory Modelling using Spreadsheets (Microsoft Excel®) SSC05 Producing Accurate Forecasts M23 Capacity Management Foundation Course
Expert Systems / Tools:What Manufacturing Control Systems Do You Need?
Relevant Further Reading: The following further articles were mentioned in this paper:a. Permanently Maintained Website Articles: Materials Management & Stock Control Diagnosing Manufacturing Control Problems
b. Previously Featured Articles from our Archives (Up to 2 per organisation available on request): T002: Commonality Trees T008: Lead-time Analysis T014: Re-Order Point Systems (ROP) |
Your Question?If you have a current business issue, which you would like to discuss, in complete confidence and without obligation please ring us or send an email describing your issue. (See "Contact Us" for details.) Featured Reader's QuestionIn this section we publish a previous question which we feel may be of interest to others with the permission of the originator and if necessary the question is reworded to protect confidentiality. Links to related training and further reading including previous readers questions on left. Question 30: How can Kanban & MRP be integrated & can MRP cope with short lead-times?
Our sales are fairly fast moving and we attempt to supply everything with a 5 day turnaround. We have an MRP1 system which is used to schedule materials from forecasts, which of course are never accurate. But we do not at the moment allow our production to be based on the MRP schedule. Rather in Kanban fashion, we build goods to maintain a finished goods stock level, and build as required to maintain these levels. If I may I have two questions: 1. Can MRP alone ever cope with the situation where delivery times are very short? 2. Given the fundamental differences between "push" and "pull" systems, can MRP & Kanban be combined, to give the best of both worlds?
Thanks....(Name & address supplied) ____________________________________________ AnswerHello ....What you are questioning here is the Manufacturing Strategy and Inventory Strategy, as well as the manufacturing control strategy. I.e. to what extent can you make to order as opposed to make for stock / assemble to order. Lead-time analysis and Commonality Trees (articles attached) should help you here. (See Previous Technique T008: Lead-time Analysis.) and (Previous Technique T002: Commonality Trees)
Now to answer your questions directly, but in reverse order:
You can buffer demand volatility with either stock or capacity. For example, if you can respond to demand volatility with manufacturing capacity flexibility, you do not need to hold finished stock, but you need sufficient raw materials buffer or supplier agility to allow this. Alternatively you could use lead-time analysis to establish an Inventory Strategy and to determine to what degree MRP does not need a forecast. I would need more information to advise you properly as to which methods are appropriate in your circumstances, but suggest meanwhile that you take a look at:
I hope this helps ______________________________________________________________________ For more articles try our archives at: "Previous Best Practices ","Previous Techniques ", "Previous Questions: ", "Previous Malpractices ". |
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| Home Page | Public Training Course Schedules | Over 150 Best Practice Articles | Expert Systems / Tools | This Month's Features / News | About Us | Your Question / Contact Us |
Whilst great care has been taken to provide relevant, accurate, practical, advice based on our considerable process design and development experience, this will almost certainly require interpretation into the context of your unique business. Please be careful in doing so and if in doubt seek expert advice. We would welcome your feedback!
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